Strong delivery in H1 driven by new products, new business wins and consumer expansion
Experian plc, the global information services company, has issued its financial report for the six months ended 30 September 2022.
Brian Cassin, Chief Executive Officer, commented:
“We delivered another strong performance in H1 driven by new products, new business wins and consumer expansion. Total revenue growth from ongoing activities was 7% at actual exchange rates and 9% at constant exchange rates. Organic revenue growth was 8%. While we expect economic conditions to be tougher over the balance of the year, and face some stronger comparables in Q3, our full year expectations are unchanged. We expect organic revenue growth of between 7-9%, total revenue growth of between 8-10% and modest margin accretion, all at constant exchange rates and on an ongoing basis.
“With many households and businesses facing a difficult period of rising costs in the coming months, we will also continue to push ahead with our mission to help millions of people improve their financial health and save money.”
Benchmark and Statutory financial highlights
- See Appendix 1 (page 15) and note 5 to the condensed interim financial statements for definitions of non-GAAP measures.
- Organic revenue growth is at constant currency.
- Revenue and Benchmark EBIT for the six months ended 30 September 2021 have been re-presented for the reclassification to exited business activities of certain Business-to-Business (B2B) and Consumer Services businesses, detail is provided on page 12 and in notes 6(a) and 7 to the condensed interim financial statements.
- See page 16 for reconciliation of Benchmark EBIT from ongoing activities to Profit before tax.
- A good half of strategic and financial progress. Q2 organic revenue growth was 8%, to give 8% for the half, with selective acquisition in-fills taking total revenue growth from ongoing activities to 9% at constant exchange rates.
- Consumer Services organic revenue up 12%, as we address new value pools with broader propositions, serving 145 million free members, up 11 million over the past six months.
- B2B organic revenue growth of 7% supported by expanded data assets, enhanced analytics, wider adoption of our new platforms, and addressing new client segments.
- Significant expansion in Latin America, and good performances across North America and the UK and Ireland (UK&I).
- Plan to deliver enhanced focus and improved operating performance in key EMEA/Asia Pacific markets is well under way. Started phased exit from identified markets. Group revenue and Benchmark EBIT are re-presented as a result of these planned market exits.
- Benchmark EBIT rose 8% to US$873m. Ongoing Benchmark EBIT margin of 27.3%, compared to H1 FY22 reported margin of 26.3% and re-presented prior-year comparative margin of 26.9%.
- Statutory profit before tax of US$517m down from US$654m, predominantly due to a non-cash charge for the impairment of goodwill of US$152m in EMEA, and an increase to the fair value of contingent consideration. Basic EPS down from USc 56.5 to USc 33.5 reflecting the lower profit before tax and an increased tax charge.
- First interim dividend up 6% to 17.0 US cents per ordinary share.
Experian will update on third quarter trading for FY23 on 17 January 2023.
Source: Experian Earnings Release